According to market analysts, the corporate India will have to take more steps to establish the retail business in metros and other major cities in coming days. In the middle of establishing the retail business in the metro cities, the Corporate India has also taken a decision to tap the rural retail market worth of $100 billion as well.
The Industrial houses are ready with the innovative schemes, the concrete plans and better human resource policies to get their own share in the 100-billion dollar market in rural India.
The reason behind the sudden change of direction from the urban India to rural India is the unimaginable market growth in the rural markets. According to the data, the rural markets are growing at double the rate of the growth of urban markets. The growth rate has forced the corporate India to concentrate on rural retailing market.
More than 60 per cent of the India’s 1.12 billion population live in rural part of the country. At the same time, at least 87 per cent of rural markets have no access to any kind of organized market and distribution of the commodities.
In the unorganized retail sector in rural India, larger number products on the rural retail shelf are agro-based products. Now, the Indian companies are desperate to make their products available in rural areas. They are desperate to do so because of the fast expansion of market in rural areas and the entry of new players into this emerging sector.
Bharti-Wal-Mart joint venture is ready to establish supply chain network in rural India in the next 3-4 years in different parts of the country. Reliance Retail’s Rural establishments such as procuring-cum-processing hub and one-stop farmer shop has also planed to open more shops in states such as Punjab, Maharashtra, West Bengal, Andhra Pradesh and Gujarat.
Pantaloons and DCM Shriram (Hariyali Kisan Bazar in 2002 in Punjab) are next in the line. This is the clear indication that the rural India is going to revolutionize the Indian retail sector in coming days.